In-House vs Agency PPC: When to Bring Google Ads In-House and Stop Paying Fees for 'Maintenance'

Businesses "graduate" from full-service PPC agencies when their ppc account structure stabilizes and automation handles daily optimization effectively.

In house means managing PPC campaigns with your own internal team, which allows for immediate communication, faster access to updates, and greater flexibility in adjusting paid ad strategies.

At this stage, paying high retainers for maintenance is capital inefficiency; however, completely removing expert oversight often creates “performance drift.” The cost difference between agency fees and in-house management becomes more apparent, as agencies typically charge for ongoing services while in-house teams may offer more predictable expenses.

The strategic solution is shifting from execution-based retainers to high-level advisory or "architectural" validation.

Agencies charge monthly management fees, which can be flat, hourly, or percentage-based, and these pricing models should be weighed against the costs of maintaining an in-house team. Agencies often justify their fees by highlighting the agency's expertise, including specialized knowledge and access to advanced features that can enhance campaign performance.

The paid search agency monthly fee:

If you’ve ever opened a monthly agency invoice, looked at the "management fee," and thought, "Wait, what did they actually do this month besides send me a report?" you aren’t being difficult.

You’re likely just noticing that your business has matured past the point of needing constant hand-holding and babysitting.

At this stage, you may start to question whether paying a recurring agency fee is the most cost effective use of your PPC budget, or if bringing PPC management in-house could achieve similar results at a lower overall cost.

FAQ’s from my paid search consulting clients

As a subject matter expert, top 100 PPC expert, and writer for Search Engine Land and Search Engine journal my inbox is filled with business that want to pick my brain. Here are the questions that keep coming up.

  • Don’t bring ads in-house until you are losing more on agency fees than the cost of a salary. Most companies make the mistake of hiring too early.

    Stop outsourcing if:

    • You are paying an agency $5,000/month just to "maintain" things.

    • You don't have a documented system yet (you will just hire chaos).

    • You are afraid of learning the basics. If you bring it in-house without a playbook, you will lose money.

    • Fix the system first. Then hire.

  • You are likely overpaying. Most agencies charge a "tax" on your growth. Standard pricing models that hurt your bottom line:

    • Percentage of Spend: They take 10%–20% of your budget. If you spend more, they get paid more. Even if you don't make more sales.

    • Flat Retainer: Usually $2,000–$5,000/month minimum.

    • Hourly: Rare, but often padded. If you pay a % of spend, you are incentivizing the agency to waste your money. Stop doing that.

  • Setup is the architecture. Maintenance is often a retainer trap.

    • Setup: The hard work. Researching keywords. Writing ads. Setting up tracking. This is where 90% of the value is created.

    • Maintenance: The agency checks your account once a week. They tweak a bid. They send a report. Don't pay setup prices for maintenance work. If the account is built right, it shouldn't need constant repair.

  • The fastest way to cut fees is to stop being a "renter" of your own data.

    1. Kill the % of ad spend model. Demand a flat fee.

    2. Own your account. Never let an agency create an account you don't own.

    3. Switch to "Consultant + Execution." Pay an expert to build the system, then have a junior in-house person run it. Stop paying for a logo on an invoice. Pay for results.

The PPC Agency Model is Broken: Stop Paying a "Success Tax" and Bring Your Ads In-House

Let’s be honest about how the paid search marketing industry actually works.

Most agencies operate on a model that benefits them, not you. They charge a fee based on how much money you spend, or they charge a flat monthly rate that stays high even when their workload drops to zero. Agencies often assign an account manager to oversee your campaigns, but this doesn't always translate to better results.

They get paid whether your business grows or stagnates.

In 2026, the landscape of Google Ads and paid search has changed. The "button pushing" and the manual bid adjustments, the negative keyword scrubbing, the tedious day-to-day tweaks is largely handled by AI and automation now. While agencies tout their industry expertise, much of the technical work is now handled by automation.

If you have a mature ad account, you should NOT be paying premium agency fees for basic maintenance.

But you probably are.

You are likely paying what I call a "Success Tax." You built a business. You have a product that works. And now, you are paying an external team $5,000 or $10,000 a month just to keep the lights on.

It’s time to stop.

The PPC Tension Point

Here is the catch. Most founders and Marketing Directors realize this. You look at the invoice, you look at the results, and you do the math. You realize you are overpaying.

So, you fire the agency to save margin.

You hand the keys to a junior marketer on your team, or you rely entirely on Google’s automated recommendations. However, without a dedicated in house ppc manager and facing resource constraints such as limited budgets, tools, and technologies, your team may struggle to maintain or improve campaign performance.

Three months later? Performance crashes. Costs go up. Leads go down.

Why did this happen? Why did paid search start going downhill when you brought it in-house?

Because while you didn't need a heavy-handed agency, you stopped checking the system entirely. The "Architectural Integrity" of the account decayed because no one was watching the strategy.

In house management comes with its own challenges, such as maintaining strategic oversight and ensuring alignment with company goals, which can lead to performance drops if not properly addressed.

You still don't need an agency. But you can't just leave the account alone, either.

There is a third option. This is how I operate, and it is how smart companies are winning in 2026.

The Two Phases of Search Marketing: Build vs. Run

To make a smart financial decision, you have to separate your marketing into two distinct phases. Most people treat them as the same thing. They are not.

Phase 1: The Build (Scaling)

This is the heavy lifting part of PPC. This is taking a spend of $50k and scaling it to $200k. This requires testing, aggressive structural changes, creative overhauls, and constant hands-on keyboard time.

  • Resource Need: High execution, high strategy. A PPC specialist or a dedicated house PPC team is often required during the build phase to handle the complexity and scale.

  • Cost: Worth the high retainer, but can also be done with a strategist like myself.

When you are in this phase, you pay for the expert. You pay for the hours. You pay for the sleepless nights fixing tracking errors and “optimizing”.

Phase 2: The Run (Optimization & Profitability)

Once the system is built, the work changes. You don't need an expert to check the account every single day. The heavy lifting is done.

  • Resource Need: Low execution, high strategy.

  • Cost: The high retainer is now wasted capital.

This is where the agency model fails you. They keep charging you "Phase 1" prices while doing "Phase 2" work.

You don't need someone to rebuild the system every week. You need a Strategist who looks at the data once a week and says, "We are drifting off course. Fix this one specific thing."

At this stage, focusing on long term strategies, such as retention and brand building, becomes increasingly important for sustainable growth.

“We might want to look at what we are doing in email marketing”

“A portion of the spend might want to move to programatic”

For ongoing optimization, many businesses are now adopting a hybrid model, combining in-house oversight with external PPC expertise to maximize results.

Advanced Tools and Technology: Empowering Your In-House Team

In today’s PPC marketing world, the right tools aren’t just nice to have, rather they’re essential for any in-house team looking to run successful PPC campaigns and stay ahead of the competition. Gone are the days when only big digital marketing agencies had access to cutting-edge technology. Now, your in-house team can harness advanced tools to streamline processes, boost efficiency, and drive real results, all without the agency price tag.

One of the biggest advantages of modern PPC management tools is the ability to track performance in real time.

Whether you’re monitoring ad spend, conversions, or ROI, platforms like Google Ads and Google Analytics put actionable data at your fingertips. This means your in-house team can make smarter, faster decisions and ensure your marketing efforts are always aligned with your business goals.

Automation and artificial intelligence are also game-changers for in-house PPC management. AI-powered tools can handle everything from keyword research and bid management to ad copy suggestions and budget allocation. By automating these routine tasks, your in-house team is freed up to focus on what really matters: high-level strategy, creative marketing campaigns, and building a strong brand identity. This shift not only improves cost efficiency but also gives your team greater control over your digital advertising.

Staying on top of marketing trends and industry developments is another area where advanced tools make all the difference. Many platforms now offer insights into industry trends, competitor benchmarks, and best practices, helping your in-house team keep your PPC campaigns fresh and effective. With access to the latest data and recommendations, your house team can ensure your marketing campaigns are always at the cutting edge.

Choosing the right tools for your in-house team starts with understanding your unique marketing needs and business goals.

Are you aiming to increase conversions, lower your ad spend, or expand your paid social presence?

There’s a wide range of PPC management platforms, reporting dashboards, and creative tools available—each designed to help you track performance, optimize campaigns, and manage multiple projects with ease.

Don’t be afraid to ask other marketing professionals for recommendations or to test out a few options before committing.

The bottom line?

Advanced tools and technology can empower your in-house team to deliver results that rival even the best agencies.

By leveraging automation, real-time data, and industry insights, your team can achieve greater control, cost efficiency, and long-term success—without the hidden costs or overhead of agency work. In the ongoing agency vs in-house debate, the right tools can truly level the playing field, allowing your internal teams to work closely together, adapt to rapid growth, and execute marketing campaigns that drive your business forward.

Whether you’re managing PPC ads, launching new digital marketing campaigns, or building your brand through paid social, investing in advanced tools is an investment in your team’s success.

Give your in-house team the resources they need, and you’ll see just how much of a difference the right technology can make.

Introducing the PPC Validation Method

This is the bridge for brands that have outgrown the agency model but aren't ready to hire a CMO.

Many businesses think at this point they have “outgrown their agency”.

Unfortunately they have identified the issue but they turn around and hire another agency thinking it will be different.

You don’t need an agency to execute. This is the big mistake.

You have an in-house person, or you are smart enough to handle the basics. An in house marketing team can provide strategic alignment and faster execution compared to agencies, making it easier to adapt to shifting priorities. Marketing in house offers greater control over campaigns but also requires internal expertise to be effective.

But you cannot afford to fly blind.

I call this The Validation Method.

It is a high-level engagement designed for decision-makers who want oversight without the bloat. It is not "management." It is "governance."

There is no wrong answer, each business must choose the model that fits its needs.

Here is how the logic shifts when you work with me:

1. PPC (The Anchor)

I stop tweaking bids. I stop pretending that moving a bid by 5 cents is going to save your business.

Instead, I audit the strategy. I ensure your internal team (or the algorithm) isn't drifting away from profitability. I validate that the money going out is actually bringing qualified leads in.I also make sure your PPC budget is allocated efficiently across advertising campaigns to maximize ROI.

I look for the "Silent Killers" which the settings and features that Google changes without telling you (or that you miss because you aren’t in Google Ads documentation all day), or the keywords that start wasting budget unnoticed.

2. Total Search (Paid + Organic)

Silos kill growth. In the agency world, your SEO guy never talks to your PPC guy.

In the Validation Model, I use your paid data to direct your organic content strategy.

If I know a keyword converts at 15% on Google Ads, why aren’t we writing three blog posts about it? If we are spending $5,000 a month on a term that never converts, why are we trying to rank for it organically?

Paid Search buys data. Organic Search uses it. I make sure that transfer happens.

3. Retention (The Profit Check)

Traffic is vanity. Profit is sanity.

Most agencies only care about the "ROAS" or the “lowest CPA”. They don't care what happens after.

I validate that the traffic we are buying is actually turning into Lifetime Value (LTV) via your email and retention flows. If we buy a lead for $50, are they getting the right welcome email? Are they buying a second time?

If the answer is no, we don't spend more on ads. We fix the email.

The Strategic Value of Paid Search Consulting

You get the brain of a Head of Growth for a fraction of the cost of a traditional agency retainer. While a marketing agency can offer specialized expertise and manage your campaigns, consulting provides a more tailored approach and can be more cost-effective for businesses seeking strategic guidance without the overhead of a full agency partnership.

You stop paying for "hours worked" and start paying for "mistakes avoided

Case Study: The Paid Search Agency "Graduation" in Practice

I recently worked with a client who had hit this exact ceiling. They were referred to me by a large agency.

The prior agency had successfully scaled them to market dominance using Google Ads. The account was incredible. It was efficient. It was profitable. It was an amazing referral. Agencies like this often work with diverse clients and various businesses, which gives them broad industry insights and the ability to develop tailored strategies. They can also quickly scale resources to meet tight deadlines, a flexibility that may not always be necessary for a single company.

But, keeping them on a high-fee maintenance contract felt wrong. This was an agency on the “up and up” not one of the bad agencies. The end client didn't need me in the account every day. The heavy lifting was done.

The Pivot:

Instead of staying with the paid search agency, I pivoted the client into a model where I was in specific advisory role that amounted to about 5 hours a month.

  1. They saved money: No more massive management fees for "maintenance." They cut their external marketing bill by 60%.

  2. I unlocked growth: Because I wasn't bogged down in bid adjustments, I had time to look at their Email and SEO channels.

I realized their paid traffic wasn't being nurtured properly. I fixed their flows, used PPC data to brief their content team, and grew the business more by doing less manual work.

They graduated. They took ownership of their success in paid search.

Now I Need to Prepare You: The Three Lies Agencies Tell You

If you try to leave your agency to switch to this model, they will panic. They will try to scare you. Here are the three lies they will tell you to keep you paying that monthly fee.

Lie #1: "The Algorithm changes every day." The Truth: It doesn't. Google changes the interface often, but the core principles of marketing which are the right offer, to the right person, at the right time do not change. They want you to feel overwhelmed so you feel dependent.

Lie #2: "You need a full team." The Truth: You are paying for their overhead. You are paying for their office rent, their sales team, and their ping-pong table. For a standard Google Ads account, you need one smart person and one strategic overseer. That's it.

Lie #3: "We have proprietary tech." The Truth: Usually, this just means they use a third-party tool that creates automated reports. Or worse, they use a "black box" bidding software that hides the data from you. If they can't show you exactly what they are doing in the Google Ads dashboard, run.

Is The Paid Search Consulting Model Right For You?

This is not for everyone.

If you have a budget of $2,000 a month, you are perfect for this. You have a low budget and can’t afford an agency then this model is great.

If you are spending $30k, $50k, or $100k+ a month on ads, you are currently spending tons money on management fees that provide zero incremental value. You should absolutely consider my 90-Day-Ditch The Retainer.

Self-Diagnosis Checklist:

  • [ ] Do you receive monthly reports that look great but don't match your bank account?

  • [ ] Does your agency bill go up when you spend more, even if they didn't do extra work?

  • [ ] Do you feel like you don't actually own your marketing strategy?

  • [ ] Is your agency "maintaining" rather than "growing"?

If you checked any of those boxes, you are stuck in the “Agency Trap”.

Practical Takeaway

Look at your last three months of Google Ads performance. Now look at your agency invoices.

If performance is flat (stable) and the invoice is high, you are paying for insurance, not growth.

It might be time to stop paying for activity and start paying for strategy.

You don't need a massive team. You need a validated system, a junior operator to run it, and an expert to ensure it never breaks.

Would you like me to audit your current setup to see if you are ready to "graduate" to the Validation Method?

It starts with a simple conversation. No sales team. No jargon. Just me, you, and the numbers.

Stop Overpaying Today
Sarah Stemen

Bio written by Sarah Stemen

Sarah Stemen is your leading resource for PPC help and AI-powered campaign optimization. As the President of the Paid Search Association (PSA) and a globally recognized Top 100 PPC Strategist, she leverages her 17 years of Google Ads experience to deliver enterprise-level strategy and audits that generate 30%+ ROI improvements. A trusted contributor to Search Engine Land and Search Engine Journal, Sarah's insights are frequently shared on industry podcasts, YouTube, and Reddit. Find her data-driven strategy at thesarahstemen.com.

https://www.thesarahstemen.com
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